Upcoming Changes to FASB Lease Accounting Standards to Transform NYC Commercial Real Estate Within Two Years

A key discussion during the second meeting of the New York City Mastermind group centered on upcoming changes to FASB’s lease accounting standards set to take effect in 2018 for most commercial businesses. How the new regulations will impact cash, balance sheets and P&L for landlords and tenants in the retail and commercial markets was of concern to all. Several members thought the time is right for new accounting consulting firms to emerge to guide businesses through the new rules.

The group also looked at what is currently “hot” or “soft” in the current NYC real estate scene. The Midtown Manhattan and new properties in the Hudson Yard dock area on the west side continue to be key hot spots as is the Brooklyn office market. The Red Hook section along the river appears to be the next big growth area for mixed use. The Lower Manhattan area has slowed down due to shrinking inventory. Industrial continues to be strong, especially in northern New Jersey which is considered the hottest industrial center due to the growth of ecommerce.